TaxTMI 
TaxTMI 
2012 (5) TMI 760
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....tances of the case and in law, Ld.CIT(A) has gravely erred in deleting the addition made by the A.O. in disallowing & capitalizing interest amounting to Rs. 6,33,729/-as per provisions of section 36(i)(iii) of the Income Tax Act, 1961. 2. That on the facts and circumstances of the case and in law, Ld. CIT(A)has gravely erred in deleting the addition made by the A.O. on the issue of disallowance of Rs. 2,89,995/- u/s 40(a)(ia) of the Income Tax Act1961 for the payment made on account of interest paid to M/s SREI International Finance Ltd. On which no TDS was deducted." 3. The issue in ground No.1 raised by the Revenue is against the deletion of addition made under section 36(1)(iii) of the Act. 4. The brief facts of the case are that dur....
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....e on the order of the Assessing Officer. 7. The learned A.R. for the assessee placed reliance on the order of the CIT (Appeals). 8. We have heard the rival contentions and perused the record. The issue raised in ground No.1 is in relation to the application of proviso to section 36(1)(iii) of the Act. The said section 36(1)(iii) of the Act talks of deduction to be allowed on the amount of interest paid in respect of capital borrowed for the purposes of business or profession, while computing the income from profits and gains of business. The proviso to section 36(1)(iii) of the Act provides that where any amount of interest was paid, in respect of capital borrowed for acquisition of asset, then such interest which is relatable to t....
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....sallowance made by the Assessing Officer. Uploading the order of the CIT (Appeals) we dismiss ground No.1 raised by the Revenue. 10. The issue in ground No.2 raised by the Revenue is in relation to the disallowance of addition made by invoking provisions of section 40(a)(ia) of the Act. 11. The brief facts relating to the issue are that during the year under consideration the assessee had made payment of Rs. 2,89,995/- on account of interest. As per the Assessing Officer, the said payment was made to M/s SREI Infrastructure Finance Ltd., which was a non-banking company and consequently TDS was to be deducted out of such interest payment. The Assessing Officer in view of the provisions of section 40 ()(ia) of the Act, disallowed sum of Rs.....